SCHEDULE: Ikarian Capital Reduces Avalo Therapeutics Stake to 3.8%

Sentiment:

Beneficial Ownership Report Amendment 14 November 2025 6:26 PM

📋All filings for Avalo Therapeutics, INC

Ikarian Capital and Neil Shahrestani have filed an amendment to their Schedule 13G, disclosing a reduced beneficial ownership of 3.8% in Avalo Therapeutics, Inc.

Worse than expectedThe beneficial ownership stake of Ikarian Capital, LLC and Neil Shahrestani in Avalo Therapeutics, Inc. has decreased to 3.8%, indicating a reduction from a previously higher stake (implied by the amendment filing for a percentage below 5%). This suggests a reduced conviction or partial exit by a significant institutional investor.

Summary

Ikarian Capital, LLC and Neil Shahrestani (Reporting Persons) filed an Amendment No. 2 to Schedule 13G for Avalo Therapeutics, Inc.
The Reporting Persons now beneficially own an aggregate of 711,967 shares of Avalo Therapeutics, Inc. Common Stock.
This represents 3.8% of Avalo Therapeutics, Inc.'s outstanding Common Stock.
The ownership includes 563,790 shares issuable upon conversion of Series C non-voting convertible preferred stock and 63,400 shares from options, both exercisable within 60 days.
Conversion of preferred stock is subject to restrictions, preventing beneficial ownership from exceeding 9.99% of outstanding Common Stock upon conversion.
The 3.8% ownership percentage is based on 18,697,758 shares of Common Stock outstanding, which includes 18,133,968 shares outstanding as of November 3, 2025, as disclosed in the Issuer's quarterly report on Form 10-Q filed on November 6, 2025, plus the 563,790 convertible shares.

Sentiment

Score: 4

Explanation: The filing indicates a reduction in the beneficial ownership stake of Ikarian Capital, LLC and Neil Shahrestani to 3.8%, implying a partial divestment or reduced conviction from a previously larger position.

Negatives

The beneficial ownership stake of Ikarian Capital, LLC and Neil Shahrestani in Avalo Therapeutics, Inc. has decreased to 3.8%, indicating a reduction from a previously higher stake (implied by the amendment filing for a percentage below 5%).

Future Outlook

Industry Context

Stakeholder Impact

Shareholders: May interpret the reduction in institutional ownership as a negative signal, potentially impacting investor confidence and share price.

Key Dates

Date	Description
09/30/2025	Date of event which requires filing of this statement (reduction in beneficial ownership).
11/03/2025	Date as of which 18,133,968 shares of Common Stock were outstanding, as disclosed in the Issuer's Form 10-Q.
11/06/2025	Date the Issuer's quarterly report on Form 10-Q for the period ended September 30, 2025, was filed with the SEC.
11/14/2025	Date of signing of the Schedule 13G Amendment.

Recommendation

hold

While the reduction in a significant investor's stake is a negative signal, this filing alone does not provide enough fundamental information about Avalo Therapeutics, Inc. to warrant a strong sell or buy recommendation. Investors should hold and monitor further developments and the company's financial performance.

Keywords

Avalo Therapeutics, Ikarian Capital, Neil Shahrestani, Schedule 13G, beneficial ownership, common stock, institutional ownership, equity stake, investment adviser

Disclaimer:The information provided here is for general informational purposes only and does not constitute financial advice, recommendation, or endorsement of any kind. It may contain errors or omissions. You should not rely on this information to make financial decisions. Always seek the advice of a qualified financial professional before making any investment or financial decisions. Use of this information is at your own risk.